Cisco woos VARs with changes to programme

Networking giant looks to branch out into new markets by reaching out to more diverse resellers

Cisco’s channel appears to be set for changes as the networking giant plans a possible restructuring of its partner programme.

CRN understands that the vendor wants to become more accessible to what it terms as ‘advanced technology VARs’, which include resellers in the security, storage and wireless arena. The channel is waiting to hear further details at the vendor’s Partner Summit in San Diego this week, where a simplification of its current channel set-up is expected.

A source close to Cisco, said: “Cisco wants to grow in advanced technology. It has a very good networking channel, but it lacks the penetration with security, voice, wireless and storage resellers.

“The new programme will make it easier for advanced technology VARs to work with Cisco. There will be a lower cost of entry and less hoops [for resellers] to jump through.”

The source added that it is a challenging period for Cisco, which is shifting focus from its traditional routing and switching area, to its less dominant position in the advanced-technology market.

John Donovan, managing director of channels at Cisco UK and Ireland, told CRN last month: “If there is one area of opportunity we want to catch, it’s convergence and security.”

Nathan Marke, sales and marketing director of Cisco Gold partner Prime Business Solutions, said: “Cisco is applying focus to the SME sector, where you need to offer everything. It makes sense to assist different VARs.”

Mark O’Hara, managing director of Cisco reseller Hydra, said: “Cisco is always changing something, but if it wants more diverse VARs this seems like a sensible idea.”

Mike Lawrence, managing director of Cisco reseller Bentpenny, said: “It makes sense to integrate the networking and alternative VARs. My only concern is of too many Cisco resellers coming into the market. Traditional VARs could suffer.”

One Cisco distributor told CRN: “Cisco has been talking about making it easier for VARs to engage with it. Previously, it was difficult to join Cisco’s programme because you had to pay all training costs upfront.”

Cisco declined to comment.

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